The Minister for Finance said today that Home Building Finance Ireland will continue to operate and will continue to closely monitor developments across the wider market and to respond to ensure that the supply of new homes does not get disrupted due to a lack of funding.
Home Building Finance Ireland was set up in 2019 as part of the Government's response to Ireland’s housing supply shortage.
It had an initial loan fund capable of providing funding to assist in the building of up to 7,500 new homes over five years.
Michael McGrath said that by the end of April this year, HBFI has approved total funding of €1.353 billion to support the potential delivery of up to 6,161 homes across 22 counties.
HBFI has advanced funding for 60 developments by the end of 2022 with Mr McGrath said the number of homes completed through HBFI funding expected to increase significantly over the coming years.
The Minister made his comments during a visit to a new housing development in Ashtown in Dublin, which was funded under the HBFI Momentum Fund.
Funding was provided to develop 92 units with a mix of three and four bedroom units, aimed mainly at the first-time buyer market.
Mr McGrath said that during the second review of the HBFI programme, his department engaged extensively with stakeholders who have provided feedback in relation to the funding landscape more generally and on the impact HBFI is having on the market for residential development finance.
"A clear consensus has emerged that HBFI is playing a key role in providing access to debt financing for residential development which would otherwise not be available on the market. In addition, feedback from all stakeholders is that HBFI should continue its role in the market for residential development finance into the future," he stated.
"Following this review, I am satisfied that funding gaps remain and that existing funding providers may not yet have the capacity or risk appetite to provide the overall levels of funding required to fully support the growth in housing output required to meet expected demand at this time," the Minister said.
"Therefore, this review concludes that HBFI should continue in operation at this time with a further review to take place in 2025," he added.
Dara Deering, the chief executive of HBFI, said the latest review of the programme shows that HBFI is playing a significant role in accelerating the delivery of new homes across Ireland by addressing funding gaps that are faced by housebuilders.
"HBFI has established a strong track record in funding new houses and apartments for first-time buyers, renters and people who need social housing, and we look forward to building on that track record in the coming years," she added.
